Qualys expands AI risk platform

Qualys, Inc. continues to cement its leadership in cloud-based cybersecurity through relentless innovation and expansion of its risk management platform. The company's strategic investments in advanced AI modules and integrated security solutions position it at the forefront of enterprise cyber risk management.

Qualys was founded in 1999 and is headquartered in Foster City, California. It delivers cloud-based cybersecurity solutions, including vulnerability management, compliance and security operations platforms for enterprises, helping organizations automate and secure their digital infrastructure.

Enhanced threat intelligence

On October 15, 2025, Qualys announced the expansion of its Enterprise TruRisk Management (ETM) platform, combining Agentic AI with new modules like ETM Identity, TruLens, and TruConfirm. Such enhancements will boost identity security, deliver industry-specific threat prioritization and enable organizations to predict and prevent AI-driven attacks. The update strengthens predictive threat analysis capabilities and positions the company as one of the leading innovators in intelligence driven, proactive cybersecurity solutions.

Steady growth trend

Qualys posted a decent performance over FY 21-24, achieving a revenue CAGR of 13.9%, reaching $608m in FY 24, propelled by increased demand for cloud-based security, new product innovations and the increasing adoption of risk management modules. EBIT registered a CAGR of 17.6%, reaching $187m. Consequently, margins expanded from 28% to 30.8%.

Over FY 21-24, FCF grew from $176m to $212m, supported by growth in cash inflow from operations, from $201m to $244m. This led to a rise in cash and cash equivalent from $137m to $232m. Meanwhile, the company's gearing improved from 11.1% to 9.9%.

Qualys delivered resilient Q3 25 results, driven by constant innovation, strategic contract wins, and increased customer retention supported by reduced operational complexities. In addition, operating margin expanded by 608bp to 34.2%. For FY 25, Qualys expects revenue growth of 10% y/y between $665.8m and $667.8m.

In comparison, Rapid7, Inc., a local peer, reported a revenue CAGR of 16.4% over FY 21-24, reaching $844.0m in FY 24. EBIT fell at CAGR of -31.8% to $35.6m. However, its margin expanded from -21.0% to 4.2%.

Looking ahead, analysts anticipate an EBIT CAGR of 8.3% over FY 24-27, reaching $339.1m with margin expansion of 32bp to 44.3% in FY 27. In addition, analysts estimate a net profit CAGR of 6.2% to $208.1m. Likewise, for Rapid7, the analysts estimate an EBIT CAGR of –2.1% and a net profit CAGR of 26.7% over FY 24-27.

Compelling valuation

Qualys is currently trading at a P/E of 27.6x, based on the FY 25 estimated EPS of $5.3, which is lower than its 3-year historical average of 40.0x and Rapid7's valuation of 56.8x. The company is currently trading at an EV/EBIT multiple of 15.7x, based on FY 25 estimated EBIT of $297.6m, which is lower than its 3-year historical average of 22.5x but higher than that of Rapid7 (10.0x).

Qualys is monitored by 22 analysts, five of whom have 'Buy' ratings and 17 have 'Hold' ratings for an average target price of $142.6. However, as the stock has already reached its target, only a near-term correction in its price could create a buy opportunity for investors.

Overall, Qualys has consistently demonstrated strong operational execution, leveraging innovation in AI-driven risk management. Looking ahead, continued enhancement of its platform and strategic investments are expected to drive further market share gains and position the company for resilient, long-term growth.

However, it faces risks from evolving cyber threats, intensifying competition, and complexities in global digital environments, which could potentially impact its long-term growth.